It is known that cocoa bean prices respond with the market


It is known that Cocoa bean prices respond with the market dynamics of a commodity (Sugar, Beef, Coffee, etc.); prices are determined by supply and demand. Given that barriers to entry in the cocoa market are low it often leads to oversupply or price collapses, in some cases altering the value of inventory on hand. Given that Sean Askinosie pays “well above” fair-trade prices for cocoa beans what risks is he exposed to with regards to his inventory? Just-In-Time inventory focuses on reducing cost while single origin sourcing focuses on doing the right thing. A critical part of being successful with Just-In-Time inventory is working closely with suppliers, is it possible to incorporate Just –In –Time inventory approach while being a single source origin based business? Do Just-In-Time and single origin sourcing work in conjunction or act as opposing forces? How? Why? How can Sean Askinosie balance taking care of his suppliers with doing what is right financially for his small business?

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Operation Management: It is known that cocoa bean prices respond with the market
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